There should be more clarity on mining policy within the next few months following an announcement by Minister of Mineral Resources, Mosebenzi Zwane, that the Mineral and Petroleum Resources Development Amendment (MPRDA) bill will be finalised by June this year.
A lack of clarity on what the bill (and the impending Mining Charter) contains has been one of the key challenges facing the mining sector which is already under pressure thanks to the commodities slump.
Delivering the keynote address on the first day of the Investing in African Mining Indaba in Cape Town, Zwane said the Mining Charter would be gazetted by the end of March and the MPRDA bill finalised by June.
“South Africa is ready to partner with the world to grow our mining sector,” he said.
Zwane encouraged long-term investment in the sector, saying government would “do all it can” to establish an enabling environment in the country for the mining sector.
“Government is ready to partner with the stakeholders in this sector and we call on investors to engage with us as we transform the South African economy,” said Zwane.
Frustratingly, while the amended MPRDA bill could have a major impact on the mining sector, Zwane still did not outline the content of the MPRDA or any decisions that government has taken in this regard. This still leaves uncertainty about the exact impact of this bill.
Concerns around the MPRDA are well documented with many mining stakeholders concerned about the restrictive nature of the legislation which they say discourages investment.
